Correlation Between GRINM Semiconductor and Shanghai Shuixing
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By analyzing existing cross correlation between GRINM Semiconductor Materials and Shanghai Shuixing Home, you can compare the effects of market volatilities on GRINM Semiconductor and Shanghai Shuixing and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in GRINM Semiconductor with a short position of Shanghai Shuixing. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRINM Semiconductor and Shanghai Shuixing.
Diversification Opportunities for GRINM Semiconductor and Shanghai Shuixing
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GRINM and Shanghai is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding GRINM Semiconductor Materials and Shanghai Shuixing Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Shuixing Home and GRINM Semiconductor is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on GRINM Semiconductor Materials are associated (or correlated) with Shanghai Shuixing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Shuixing Home has no effect on the direction of GRINM Semiconductor i.e., GRINM Semiconductor and Shanghai Shuixing go up and down completely randomly.
Pair Corralation between GRINM Semiconductor and Shanghai Shuixing
Assuming the 90 days trading horizon GRINM Semiconductor Materials is expected to under-perform the Shanghai Shuixing. But the stock apears to be less risky and, when comparing its historical volatility, GRINM Semiconductor Materials is 1.27 times less risky than Shanghai Shuixing. The stock trades about -0.13 of its potential returns per unit of risk. The Shanghai Shuixing Home is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 1,384 in Shanghai Shuixing Home on September 13, 2024 and sell it today you would earn a total of 256.00 from holding Shanghai Shuixing Home or generate 18.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRINM Semiconductor Materials vs. Shanghai Shuixing Home
Performance |
| Timeline |
| GRINM Semiconductor |
| Shanghai Shuixing Home |
GRINM Semiconductor and Shanghai Shuixing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRINM Semiconductor and Shanghai Shuixing
The main advantage of trading using opposite GRINM Semiconductor and Shanghai Shuixing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRINM Semiconductor position performs unexpectedly, Shanghai Shuixing can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Shanghai Shuixing will offset losses from the drop in Shanghai Shuixing's long position.| GRINM Semiconductor vs. Ye Chiu Metal | GRINM Semiconductor vs. Pengxin International Mining | GRINM Semiconductor vs. Guosheng Financial Holding | GRINM Semiconductor vs. Unisplendour Corp |
| Shanghai Shuixing vs. Nanjing Putian Telecommunications | Shanghai Shuixing vs. Tianjin Realty Development | Shanghai Shuixing vs. Kangyue Technology Co | Shanghai Shuixing vs. Shenzhen Hifuture Electric |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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